MLTA as low as RM20/month

Many of us already own homes and many are resolved about to buy a home. House is an asset that should we have to ensure our future. Among the issues we must consider in buying a house is mortgage insurance. There are two mortgage insurance is the MRTA and MLTA.

MRTA

1. Not transferable. Can not be transferred. If you refinance or purchase a new home, must take a new policy. Eg, the same home refinance after 5 years, with the SAME tenure and loan amount, the cost will increase MRTA (increase per age).
2. Decreasing coverage. MRTA only cover the loan balance.
3. Insurability is not Guaranteed. Every time buy MRTA policy, age and health factors are taken into account.
4. If the home sale or refinance, refund carumah MRTA who have paid can be claimed and paid on a pro-rate (pro rata) in accordance with the balance of the loan.
Examples of cases: Mr. Z buy home loans RM150k, RM150k MRTA also, for the past 30 years. After 5 years, Mr. Ali experiencing permanent disability (TPD). The remaining loan is RM120k. So the insurance company will pay RM120k to the bank.